All posts by Christina

Rent to Rent

This week saw one mentee needing help with estate agents on points of law and getting things right.

The letting agents firstly wanted to use an Assured Shorthold Tenancy (AST) for a Rent to Rent agreement and would not budge, in pointing out that this is really the first step of knowing the law and the Housing Act 1988, they seemed surprised that we would even suggest that an AST was wrong, even though they claim to be working with companies already.

So that you know this is what it says at the very beginning of Section 1 (1) a of the Housing Act 1988:

1            Assured tenancies.

  1. A tenancy under which a dwelling-house is let as a separate dwelling is for the purposes of this Act an assured tenancy if and so long as
  2. the tenant or, as the case may be, each of the joint tenants is an individual;

This means that when doing Rent to Rent you need to use a common law tenancy or company letting agreement (each is essentially the same thing as a company cannot be an individual).

An individual is a living breathing person known as natural person and a company is not.  The company is an artificial person, not a natural person, therefore, not an individual and using a AST would be a nonsense.

If an agent is pushing you on this, you are likely not making yourself and your company’s intentions clear, you have misinformed them of how you are going to work, or they are not used to dealing with this type of let and need education.

We worked on this and agreed that we would let the agent prepare the suitable agreement for the let.  What happened next was interesting,because a commercial lease was produced by the agent and this again was the incorrect agreement.  This is another error that gets madequite often and will leave you exposed to many costs which you may not understand and would pass all the landlord’s responsibilities on to you.  Then in this situation it is likely you would never make any profit and possibly lose money consistently.

Your Rent to Rent should be done with a Common Law Tenancy or Company Letting Agreement used for a dwelling house.  On this subject the law is clear, and this means that Section 11 of the Landlord and Tenant Act 1985 applies to your agreement too which states:

The Landlord is responsible for:

(i)      repairing and maintaining the structure and exterior (including drains, gutters and external pipes) of the property;

(ii)                keeping in repair and proper working order the installations in the property for supply of water, gas and electricity and for sanitation (including basins, sinks, baths and sanitary conveniences) but no other fixtures, fittings and appliances supplied by him for making use of water, gas or electricity;

(iii)               keeping in repair and proper working order the installations in the property for space heating and heating water.

(iv)               determining the standard of repair required by the Landlord under this clause, regard shall be made to the age, character and prospective life of the property and the locality in which it is situated.

Reference:  https://www.legislation.gov.uk/ukpga/1985/70/section/11

Your Rent to Rent property is a dwelling house and the section 11 provision must in the agreement, do not compromise  These are the landlord’s responsibility in the same way as they would be under any statutory or assured tenancy. 

The occupants and your responsibility through them is occupant maintenance such as keeping sinks, drains etc. free from blockages, except where the cause is beyond the reasonable control of the occupants; which is handled clearly in Section 11 as referred to above.

Being educated in these matters is important, so, if like the mentee you choose to leverage someone else who knows these things, then of course the mentorship for mentee has been invaluable.

Here is what she has to say about that:

https://PSReloDesTaylor.sharefile.com/d/s14af56b301d458fb

For more information call the office on 01908 911040

See you soon.

Des Taylor.

Rent to Rent is a property investment strategy of renting properties, subdividing them and renting the rooms as units for a profit.  Mr Des Taylor is the UK leading cashflow strategist in this area of property investment.

Glenn Armstrong’s Property Millionaire Academy provide a comprehensive access to the 24 sophisticated investment strategies of which Rent to Rent is one of them.

Des Taylor is running a webinar on the 25th April all about the topic of Rent to Rent. To sign up, please click here.

My December Profit Tip

However much you love or hate agents they are an essential part of your success formula!!!

If you want to know how to set yourself up for a great 2018 then all you need to do is watched the video below

I have an essential profit tip for you, I have videoed a 2 minute message for you
And this simple tip that I have put onto a video could change everything for you next year

This is a must do for you in order to potentially make 2018 your most profitable year yet.
If you are struggling to find deals you simply must listen

I hope you enjoy the first of many Property Investment Tips I will be sending to you over the next few months

What does it take to become a property millionaire (or, in fact, a successful entrepreneur in any industry)?

I find that people take my one-day property event or join my Mentoring Programme from many walks of life. Some of them are already involved with property in one form or another. They may be estate agents or developers. They may be architects or specialists of one sort or another. Equally they may be just ordinary people who want to achieve something extra-ordinary and build a property portfolio in order to look after their retirement and loved ones. The point is, you do not need any previous experience in order to succeed – and there are not many opportunities with this potential that can say that.

You might not need experience, but you do need some very specific qualities:

  • You will need to be able to listen, study and learn. You will be receiving a lot of information, strategies, case studies, legal frameworks, and the bene it of all my experience – and I don’t hold back! You will need to be able to process and understand all the knowledge you will receive.
  • You need to have the ability to make decisions and follow through. Opportunities can be lost if you spend too much time weighing up the pros and cons. Being a successful property entrepreneur doesn’t happen unless you are able to move quickly. As you will learn from some of my case studies, speed can be of the essence in a dog-eat-dog world.
  • You will need to have integrity. You will be respected by your values. You will only succeed if people can trust you and rely on your word – especially when you are dealing with investors and private lenders. Your reputation needs to be spotless.
  • You will need to be totally professional in everything you do.If you want to be the person that others feel confident in doing business with, you will need to conduct your affairs in a consistent, timely, predictable and professional manner.
  • You will need to project confidence and competence. People need to feel that you are the right person to deal with.
  • You need to have a positive mindset.After all, you are a provider of solutions and positive outcomes. Never forget, attitudes are contagious – make sure yours is worth catching!
  • You need to have a vision for your future. You need to be goal centred, and determined to do what it takes to succeed. Would you do business with someone who didn’t know where they were going?
  • Finally, you need to have a clear ‘why’. You need to know why you are prepared to go down this road. What drives you? What is your motivation for getting out of bed? Why are you passionate about this? You need to know!

There will be times when things go wrong; after all, we all live in the real world and not everything goes according to plan. When it doesn’t, you need to be able to remind yourself of why you are doing this in order to get back out there and continue. It is easy to lose heart and confidence when things go wrong. Always be able to anchor yourself with the reasons you set out on this journey, and you’ll soon get back on track.

As you will read later on in the book, there have been multiple times when my world has fallen apart. In the space of one phone call, I lost £1 million. That hurt. It hurt a lot. However, I was able to pick myself up, dust myself down and start all over again. Your motivation, and what drives you, are what you will need to be able to do this yourself.

If you look through the curriculum of my courses, don’t be put off by the amount of detail or the complexity of the subject. Yes, the journey to becoming a successful property investor and developer can be complicated at first and there is a lot to learn; however, you are not alone. When you read some of the positive comments that people have written having been on my courses, you will realise that you are a part of a very supportive community. You will make many new friends and useful contacts at our events, and you will find that everybody supports each other. We will always be there for you to help you achieve the big goals that you set for yourself.

The above article is an excerpt from my new book ‘ You too can become a property millionaire’ launching in November.

You can pre-order at the following links:

Amazon: https://www.amazon.co.uk/dp/1911425072/

Barnes & Noble: https://www.barnesandnoble.com/w/become-a-property-millionaire-glenn-armstrong/1126299921?ean=9781911425076

Booktopia: https://www.booktopia.com.au/become-a-property-millionaire-glenn-armstrong/prod9781911425076.html

Brimming With New Ideas

I have known Glenn for many years – long before he became a property millionaire.  

 

I  am  a successful BTL landlord and own about a dozen  properties.     I had been enjoying my BTL income for some years, and thought I knew it all.  However the credit crunch  changed our business.  So I decided to further my property education. There was only one person to go to. When I attended Glenn’s 4 day course 3 years ago,  I was amazed at  how much farther he had travelled down this complex property road than I had, and I was full of admiration for the different ways he had identified to make money from property.  I was  also fascinated to see  how many different levels of property expertise his students had  – both newbies and seasoned landlords came to his courses and they all left brimming with new ideas.  Glenn has a knack of explaining things in easy ways, so that even innumerate folks like me could understand them ! 
 
His support and encouragement gave me the knowledge, and confidence, to go back into the property market after not buying for a few years.  He also sourced a property for me at a substantial discount and which still has exceptionally good cash-flow – his sourcing fee was very modest indeed, especially when compared to other companies in the property education field.  I have invested in several of his training sessions and always got excellent value for money.
Glenn also made time to encourage me to maintain my weight loss programme, and over a year he text me every week to ensure I stayed on track.  I lost half my body weight and without him and his family I would not have done this.
 
I have seen Glenn help many people who were in familial difficulties, without telling anyone what he had done. He has done these things simply because he is a very kind hearted man.
 
I cannot recommend him highly enough.
 
Thank you Glenn.

Collette Lord